IDEX Online Research: Polished Diamond Prices Soar by 5.2% in June

July 03, 11by Ken Gassman

(IDEX Online News) – Global polished diamond prices rose sharply during the second half of June, and are showing no signs of a pull-back. The price increases were driven by wide consumer demand and optimism among wholesalers.

The full analysis of the polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members here.

Demand has been especially strong for polished diamonds smaller than one carat, as Asian buyers, mainly in India and China, are scooping up stones to meet the needs of a surging consumer markets.

Further, diamantaires were pleased with the results of the JCK Show in Las Vegas in June. Demand from U.S. retailers is picking up, and merchants are re-stocking their showcases. Despite the uneven economic recovery, most retail merchants are looking for a solid 2011 holiday selling season. As a result of this rosy forecast, merchants want to have ample merchandise to meet their customers’ needs.

Here are the pricing highlights for the month of June 2011 from the global polished diamond market, based on the IDEX Online Global Polished Diamond Price Index.

As long as rough diamond prices continue to rise, and as long as consumer demand remains strong, IDEX Online Research believes that polished diamond prices will continue to increase. Earlier this year, we said that we thought the price surge might moderate later in the year. There is no sign of that happening yet. However, we urge caution: price cycles are like ocean tides – they rise and they fall.

Polished diamond prices historically rise rapidly early in a recovery cycle – which began near the end of the first quarter of 2010 – and then increase at a slower pace, in line with the long term annual increase of 3-4%. We haven’t seen any moderation in the pace of price increases, but it will come one day.

The full analysis of the polished diamond prices is available to IDEX Online Research subscribers and IDEX Online members here. Click here for more information on how to subscribe or become a member.